#Everyoneneedsaplan to Keep Insurance Premiums Affordable

As we grow older, the risk of premature death and disability increases and unfortunately so do our life insurance premiums!

However, there may be a way to keep your life insurance premiums affordable in the long-term - Level Premiums.

Most life insurance policies have two premium structures Stepped and Level. Here is the basic difference between them:

• Stepped Premiums | Increase the premium each year as you grow older to account for the increased risk
• Level Premiums | Averages the premium over the lifetime of the policy, so you pay more initially but less in the long-term

The key to deciding which option may suit you the best is largely determined by when you take out the policy. If you take out the policy when you are young and the insurance is required for at least the next 10 to 15 years, the level Premium may be an option but if you only require the cover short-term then consider stepped Premium as an option.

As always, make sure you seek professional advice to determine which option will best suit your needs and objectives.